Sunday, June 04, 2006

How eBay Makes Regulations Disappear



Katie Hafner writes in The New York Times:

In quick succession one morning last month, Louisiana state legislators plowed through a long list of bills, including one to relocate the motor vehicle commission, another to regulate potentially abusive lending practices, and yet another that was the handiwork of eBay, the digital shopping mall that bills itself as "the world's online marketplace."

EBay had worked overtime to ensure the passage of Senate Bill 642, which sought to exempt some Internet transactions — like those that occur on its Web site — from Louisiana licensing requirements for businesses conducting auctions. As the State Senate's Commerce Committee convened to consider the bill, Duane Cowart, an eBay lobbyist, testified that forcing eBay "trading assistants" to fork over $300 for a license was unduly burdensome.

"What they do on the Internet is not an auction, and they are not auctioneers," Mr. Cowart told the committee. Trading assistants take items on consignment from other owners and put them up for bid on eBay, but Mr. Cowart said their activities were more akin to placing classified ads. Louisiana's senators seemed to agree with him wholeheartedly. "I think eBay is great," said one, while another regaled the room about his adventures shopping for a Plymouth Prowler on eBay. State Senator Noble E. Ellington, a Democrat who sponsored the bill at Mr. Cowart's behest, beamed as his colleagues gave the legislation their unanimous support.

EBay's lobbying activities are not confined to Louisiana. As the company has spread its innovative and influential wings across the Internet, it has also woven together a muscular and wily lobbying apparatus that spans 25 states.

More here.

1 Comments:

At Mon Jun 05, 03:30:00 AM PDT, Anonymous Anonymous said...

As a former resident of Louisiana, i had not heard anything about this bill. I hope it will be a good move for the state. They have had a rough year and hopefully they will start moving in the right direction. Can you provide any more information on this? Do you think this is a positive step for LA?

 

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